World Stock Watch

Vertex Pharmaceuticals Boosts Revenue Forecast on Strong Demand for Cystic Fibrosis Treatments

Third-Quarter Earnings Beat Estimates

Vertex Pharmaceuticals has raised its annual revenue forecast after reporting strong third-quarter earnings, driven by growing demand for its cystic fibrosis (CF) treatments. The drugmaker now expects 2024 product revenue to fall between $10.8 billion and $10.9 billion, surpassing its previous estimates of $10.65 billion to $10.85 billion.

Cystic Fibrosis Treatments Drive Growth

The company’s top-selling CF drug, Trikafta, saw sales rise by more than 13% to $2.59 billion in the quarter ended September 30, exceeding analysts’ estimates of $2.33 billion. This significant growth is attributed to the increasing adoption of Trikafta, which has become a leading treatment for cystic fibrosis, a genetic disorder affecting approximately 35,000 people in the United States.

Gene Therapy Casgevy Shows Promise

Vertex’s gene therapy, Casgevy, has also shown promising results, with the company activating 45 authorized treatment centers globally as of mid-October. Additionally, an increasing number of patients across all regions have initiated cell collection. Casgevy has won two U.S. approvals, including one for sickle cell disease in December and another for a rare blood disorder requiring regular blood transfusions in January.

Pain Drug Suzetrigine in the Pipeline

Investors are closely monitoring the development of Vertex’s pain drug, suzetrigine, which is awaiting approval from the U.S. health regulator by January. If approved, suzetrigine will provide a non-opioid treatment option for moderate-to-severe acute pain.

Strong Third-Quarter Revenue

Vertex’s third-quarter revenue rose 12% to $2.77 billion, beating analysts’ estimates of $2.72 billion. The company reported an adjusted profit of $4.38 per share for the quarter, surpassing expectations of $4.14 per share.

Looking Ahead

With its CF treatments driving growth and promising developments in its gene therapy and pain drug pipelines, Vertex Pharmaceuticals is poised for continued success in 2024. The company’s revised revenue forecast reflects its confidence in meeting growing demand for its life-changing treatments.